This is a RUSH transcript from "The O'Reilly Factor," October 29, 2009. This copy may not be in its final form and may be updated.

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BILL O'REILLY, HOST: Now for the top story tonight, reaction from none other than our pal Glenn Beck, the author of another, another book.


O'REILLY: Another one. "The Christmas Sweater: A Picture Book."

BECK: Yeah. It'll be our fourth — I mean, assuming this one does well, this could be our fourth No. 1 best-seller of the year, 12 months.

O'REILLY: In three weeks.


O'REILLY: You and Gingrich every three weeks.

BECK: I'm just saying.

O'REILLY: You and Newt Gingrich.

BECK: We're machines.

O'REILLY: It's un — you don't sleep.


O'REILLY: You just type.


O'REILLY: All right. Now I have a beef with you.

Click here to watch Beck in the No Spin Zone!

BECK: What?

O'REILLY: Each day on your program, which I'm watching more and more now, you lay out in your blackboard some very interesting things. I mean, you make some comparisons between the Founding Fathers and the people.

BECK: You watched tonight.

O'REILLY: Yeah, I did.

BECK: Thank you.

O'REILLY: I did. You're welcome. But at the end of all of that exposition, which is interesting, I say well, who does Beck think can turn the country around? And what say you?

BECK: I wish I had an answer for that, Bill. I haven't seen them yet. I keep looking for a George Washington to appear, you know, the indispensable man. He was a guy who didn't want to serve, and they asked. And you know, we got to the constitutional convention. He was like OK, come on, guys, I've served enough. I just want to be a farmer. I just want to go back to Mount Vernon. They convinced him that it wouldn't survive without him. I'm hoping that we can find someone like that.

O'REILLY: We got 100 senators and almost 500 people in Congress.

BECK: They stink on ice.

O'REILLY: All of them? There's nobody?

BECK: No, no, no, not all of them. But you know what? Here's the problem. The system, the two-party system, again I go back to George Washington. He warned us on this. He said it would just become about money and corruption. Where are the senators? Where are the representatives that are standing firm and not against the other party, but the corruption in their own? This system either has to change from the inside, which is why we started the Refounders project. I've got nine people now inside the Capitol building that are senators and congressman on both sides of the aisle that are willing to stand, not against the other party, but their own party, and say — and nobody knows who they are. And they blow the whistle on corruption.

O'REILLY: They call you up…

BECK: Yes.

O'REILLY: ...on a special phone and tell you here's what's going on, Beck. Go get them.

BECK: Uh-huh.

O'REILLY: All right. Let's take Sarah Palin, because I think Sarah Palin is a fascinating woman.

BECK: Sure.

O'REILLY: She comes out of the box at the Republican Convention. She gives one of the best speeches I've ever seen.

BECK: Yeah, great.

O'REILLY: Do you agree?

BECK: Yeah.

O'REILLY: OK. She captures the nation, particularly women. They go hey, we don't even know this woman. She's governor of Alaska. Nobody knew her, but she comes across as a real person. She's attractive. She seems to be able to run the state of Alaska pretty well, which is true.

BECK: True.

O'REILLY: OK. So then she gets into the big-time, and McCain puts her on the ticket. And she runs up against the media. And she doesn't do well in the interviews.

BECK: I think, I mean, Bill, as I have learned this year, I mean, I've been in the radio business for 30-some years, but I have never been — I have never gone through the buzz saw like I have this year. It's a different world. There's nothing — you've been through it for years and years and years. There's nothing that can prepare you for that. And I think what happened was Sarah Palin got up into this media. And I think coming from Alaska, you're kind of like, you know, folks are folks. No, they're not. No, they're not. And I think when her own party started throwing her under the bus, I think she walked into a buzz saw.

Now, I say that knowing that soon we're going to find out if that's true or not. She's either going to have gravitas now — because now she's had time to learn from experience what really goes on in Washington and what really goes on in the media, and she's had time to prepare. If she now comes out and she's wishy-washy on things, if she doesn't understand things, well, now she clearly is not qualified.

O'REILLY: All right. So you say make or break, as I do, that this book tour coming up…

BECK: Oh yeah, this is it.

O'REILLY: …this either puts her back into the big time as a contender for the next presidential election…

BECK: Yeah.

O'REILLY: ...or then she's going to be…

BECK: I will tell you that I think she's extraordinarily bright. I think her leaving Alaska, everybody said was a…

O'REILLY: I think it was a smart move.

BECK: …smart move.

O'REILLY: Yeah, smart move.

BECK: And I think she's also positioning herself for a third party. By the time this election runs around for the president, I'm sorry, but unless the Republicans and the Democrats wake up, a third party will win.

O'REILLY: You think a third party can organize themselves to 2012? See, I think that's pretty fast.

BECK: I think you're not — what everybody in Washington and the media misunderstand is there doesn't need to be a lot of organization.

O'REILLY: Got to be a lot of money though. $100 million.

BECK: But that is…

O'REILLY: $100 million.

BECK: …I will tell you that. That is the question.

O'REILLY: Right.

BECK: Can you have enough money? But I think people will put their last dime up if it's somebody that they think will clean up the mess in their own party or clean up the mess in all.

O'REILLY: Well, obviously, if Obama fails, if he fails.

BECK: Yeah.

O'REILLY: Then it's going to be open season. I mean, Obama will get the nomination, but I think Hillary may even challenge him on the Democratic side if things don't get better from where they are now.

BECK: If he fails, this — I mean, if he fails, if things are like this…

O'REILLY: Although the economic thing today was good. So you can't say that…

BECK: The economic thing was not good.

O'REILLY: Yeah, it was good.

BECK: That is because — that - you know why? Because of "cash for clunkers." That's what ticked it the other way. It is…

O'REILLY: Whatever it did, psychological...

BECK: Psychological.

O'REILLY: …it's very important (INAUDIBLE).

BECK: I agree with you.

O'REILLY: What do you think of Mitt Romney? Now Mitt Romney, I know a little bit. Now he did a very good job in Massachusetts. It's a Democratic state. He's a Republican. He did a good job saving the Olympics out in Salt Lake City.

BECK: Yeah.

O'REILLY: OK. He looks to be a guy who knows what economics are, OK? I don't think he is going to run up a trillion-dollar deficit.

BECK: No, no, no.

O'REILLY: OK? And he is very articulate, but his Mormonism has hurt him. And you're a Mormon, too?

BECK: Yeah, I know. That's crazy. Gosh, I mean, talking about diversity and we're still…

O'REILLY: Well, do you think that Romney is a guy that could capture your support?

BECK: I think Romney, here's the thing. I think — he had it, kind of, only because my main issue last time around was the economy, and he may be the only guy who could be able to help. However, I don't — Romney is a great CEO. He'll broker deals. He'll get it done. He'll never say anything that will throw it out of whack. However, what we need is not a guy who is going to make deals. We need a guy who will go in there and cut, cut, cut.

O'REILLY: A reformer.

BECK: We need a reformer.

O'REILLY: Right.

BECK: And I'm not sure Romney is that guy, although I have respect for him. What he did in Salt Lake was amazing.

O'REILLY: All right.

BECK: And he's a smart dude.

O'REILLY: Glenn Beck, everybody. Buy his 15 books. They're all over the place. I'll give you a plug there. I'm No. 3, "Bold Fresh" in audio. You're No. 1…

BECK: Really? May I just, 10 seconds?

O'REILLY: Real quick.

BECK: 10 seconds. Bill and I have something to announce next week.

O'REILLY: Next week.

BECK: Next week.

O'REILLY: We're not getting engaged, all right?

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